MGMT 311: Ch 4 - Courts and Alternative Dispute Resolution

Judicial Review

Courts have the power to judge the constitutionality of legislative and executive action; established in Marbury v. Madison (1803).

Jurisdiction

'The power to speak the law.' Requires (People OR Property) AND Type. The plaintiff must show the court has power.

In Personam Jurisdiction

Power over the person — residents. A business is a resident where it was created AND where it does MOST of its business (two residences).

Long-Arm Jurisdiction

Every state has a statute reaching non-residents with 'minimum contacts.' Individual: injure, contract, regular business. Corporation: do business, advertise, stream of commerce.

In Rem Jurisdiction

Power over the property — all four must be true. Used only when long-arm cannot be established; courts prefer jurisdiction over people.

Subject Matter Jurisdiction

Power over the TYPE of case. The ONLY jurisdiction rule that cannot be waived. General vs. limited (probate, bankruptcy).

Original vs Appellate Jurisdiction

Original = the first time a case is heard (trial court). Appellate = reviewing a case from a lower court.

Federal Question Jurisdiction

One of two routes into federal court — a question of law rooted in the sources of law, e.g. the Constitution.

Diversity of Citizenship

The other route — different states AND over $75,000 ($75,000.01). Corporations are citizens of incorporation AND principal place of business. Cannot join dollar amounts.

Concurrent vs Exclusive Jurisdiction

Concurrent = both systems may hear it. Exclusive federal: bankruptcy, federal crimes, patents. Exclusive state: divorce and adoption.

Jurisdiction in Cyberspace

The 'sliding scale' standard: substantial business online (yes), some interactivity (depends), passive advertising (never proper).

Venue

The proper PLACE for trial — where the cause of action accrued or the defendant resides. The court can still hear it if venue is wrong; parties must request a change.

Standing to Sue

A sufficient 'stake': legally protected and tangible interest, injury or threatened injury, AND a justiciable controversy that is ripe, real and non-hypothetical.

Texas Court System

Three trial levels and TWO high courts — Supreme Court (civil, 9 justices) and Court of Criminal Appeals (criminal, 9 judges). 14 appellate districts.

The Federal Court System

U.S. District Courts (trial) → U.S. Courts of Appeals (13 circuits: 11 numbered + D.C. + Federal) → U.S. Supreme Court. Texas is in the Fifth Circuit, New Orleans.

Litigation

Resolving a dispute through the court system — the alternative to ADR.

Negotiation (ADR)

The least formal. Can happen before a case is even filed; it doesn't matter when or where.

Mediation

Highly favored in the law. A third-party mediator facilitates a compromise; no attorney needed, and the mediator does NOT write the outcome.

Arbitration

The arbitrator tries the case like a judge and decides it. Binding if mandated by statute. Set aside only for bad faith, public policy violation, or exceeding powers.